Company Number: SC689111

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: MEDIUM
   Justification: While the company is active and compliant with filings, financial data shows current liabilities exceeding current assets, indicating potential liquidity strain. The net assets have improved but remain modest for operational resilience.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£109,858) exceed current assets (£103,194) resulting in negative working capital (-£6,664) for 2024, which may impact short-term obligations.
• Limited Capital Base: Share capital is nominal (£1), and total net assets (£14,569) are relatively low, restricting financial buffer against downturns.
• Small Scale and Limited Financial History: As a micro-entity incorporated in 2021, with only two employees and limited fixed assets (£21,233), operational scale and financial robustness are limited.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statement filings, demonstrating good regulatory adherence.
• Improvement in Net Assets: Net assets increased from £2,559 in 2023 to £14,569 in 2024, showing some strengthening of equity position.
• Stable Management: Director has been in place since incorporation, suggesting management continuity.

4. Due Diligence Notes:

• Review cash flow statements and bank balances to assess real liquidity beyond balance sheet figures.
• Understand the nature of current liabilities and their payment terms to evaluate risks of default or refinancing needs.
• Investigate revenue streams and customer concentration to assess sustainability of operations given small scale.
• Confirm no contingent liabilities or off-balance sheet exposures exist that could exacerbate financial risk.
• Evaluate director’s background and experience in joinery installation sector for operational competence.